CASHLESS ATM vs Traditional Debit Card Processing (POS) vs Credit Card (TEXT-TO-PAY)

Accepting Cards is Always Good for Business

Card Brands Accepted

CASHLESS ATM – accepts Debit cards only
POS – accepts Debit cards only
TEXT-TO-PAY – accepts All Major Credit & Debit Cards plus ACH & Wires

Descriptor

CASHLESS ATM – your store name will be on the customers receipt
POS – your store name will be on the customers receipt – can be modified
TEXT-TO-PAY – your unique numeric descriptor will be on the receipt

The Process

CASHLESS ATM – customer swipes their card and enters their PIN number
POS – customer swipes their card and enters their PIN number

TEXT-TO-PAY – P2P transaction processing (similar to paypal or venmo)
Telephone orders are accepted – does not need to be face-to-face

Step 1 – the customer is texted an invitation to pay via the TEXT-TO-PAY – P2P Platform
Step 2 – the customer funds their P2P account via debit or credit card (one/two clicks)
Step 3 – the customer is sent a Payment Request – they accept or decline – ALL DONE

Transaction Totals – Invoicing

CASHLESS ATM – the transaction will round up to the nearest $5.00 increment – the change is returned in cash
POS – the transaction will invoice to the exact amount – no change given
TEXT-TO-PAY – the transaction will invoice to the exact amount – no change given

Monthly Fee

CASHLESS ATM – $0.00
POS – $80.00
TEXT-TO-PAY – $199.00 and this includes your Cannabis Checking Account

Transaction Fees

CASHLESS ATM – $3.00 – three year contract or $4.00 – month-to-month. All fees are charged to the customer – Including Out of Network fees
POS – Store pays Interchange + (3.00%-3.95%) + $0.35 per Transaction – less the portion shared with the customer
TEXT-TO-PAY – Store pays 6.95% + 30 cents per transaction – less the portion shared with the customer

Equipment Costs

CASHLESS ATM – $425 in-store or $500 + $25 for wifi per terminal
POS – $200 in-store or $400 for wifi per terminal
TEXT-TO-PAY – $0.00 – uses a virtual terminal (any internet connected device)

Funding Time

CASHLESS ATM – 2 day hold then paid daily
POS – batched before 6 pm PST is next day – after 6 pm PST is the day after that
TEXT-TO-PAY – 7 day hold then paid weekly for the first 90 days – then will adjust to 1-6 days after 90 day probation depending on overall risk & charge back ratio

Reserves

CASHLESS ATM – no reserves
POS – no reserves
TEXT-TO-PAY – 10% rolling reserve for the first 90 days – it will then adjust to
0%-10% after the 90 day probation depending on your risk & charge back ratio

Banking

CASHLESS ATM – must have a business bank account
POS – must have a business bank account
TEXT-TO-PAY – comes with a FREE Cannabis Checking Account that is FDIC insured or use your existing business account

POS

CASHLESS ATM – works with any POS
POS – works with any POS
TEXT-TO-PAY – works with any POS

Charge Backs

CASHLESS ATM – none
POS – none
TEXT-TO-PAY – the company-wide average is 2 tenth’s of 1 percent – or 1 out of every 500 transaction. You must be under 1% to stay on the platform

Maximum Amount Allowed per Card

CASHLESS ATM – $800 per swipe – $1200 on an individual card within 24 hours
POS – $1,000 per swipe & per day
TEXT-TO-PAY – unlimited

Probation

CASHLESS ATM – no probation
POS – no probation
TEXT-TO-PAY – 90 day probation – then your charge back ratio will be reviewed – you must be under 1% to stay on the platform

Contract

CASHLESS ATM – month-to-month & no early termination fee
POS – 3 years – the early termination fee (ETF) $500 for more than 12 months left on the agreement – $250 for less than 12 months left on the agreement
TEXT-TO-PAY – month-to-month & no early termination fee

Opportunity Cost

These estimates do not take into account how much more often your customers will shop when they can use their credit or debit card (it’s more) or how many new customers you’ll gain by taking them away from your competition (the ones that do not accept credit or debit cards).

In Conclusion

CASHLESS ATM – Debit – The funding time is faster and there are no fees to the business except for the card readers ($425.00 in-store or $500.00 wifi).

POS – Traditional debit card processing has the fastest funding times, lowest rates, and is the most common user experience

TEXT-TO-PAY – Credit/Debit – There will be more of an initial investment ($199 monthly fee + a 10% reserve) but provide a greater ROI over a debit only solution. The ability to take phone orders has many advantages, especially for curbside and delivery. There is no equipment cost and it comes with a FREE Cannabis Checking Account.

MMJ Bankers can help you decide on the best overall solution for your business. We do this by giving you multiple options to choose from. Running an all cash business or having questionable merchant processing and banking (or none at all) will become a thing of the past. You can get a cannabis bank account through us for free and start accepting any electronic transaction within a week.

Make an appointment for a brief phone call to get started.
calendly.com/mmjbankers